Preserving the Brand

The decision makers of the Malaysia GP namely Ministry of Finance, Sepang International Circuit and Youth and Sports Ministry (KBS) should consider the preservation of the Brand, particularly the world FIA champion unchalleged for several seasons Mercedes AMG Petronas F1 Team which is synonymous with SIC as its home.

NST story:

Khairy: Malaysia should ‘take a break’ from hosting F1 race

BY NST ONLINE – 24 OCTOBER 2016 @ 8:53 PM

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KUALA LUMPUR: Youth and Sports Minister Khairy Jamaluddin today expressed his support for a temporary halt to Malaysia hosting the Formula 1 races.

Addressing the matter via his Twitter handle @Khairykj, the minister said there were many compelling factors to support the idea, including high costs and limited returns. He said that when Malaysia first began hosting the F1 races in 1999, it was the first Asian country outside of Japan to do so.

“Now, there are so many venues. There is no first-mover advantage; it’s no longer a novelty,” he said. Khairy cited reasons such as declining ticket sales and TV viewership figures, as well as foreign visitors now having the option of seeing the races in Singapore, China and the Middle East.

His comments came in the wake of the revelation by Sepang International Circuit (SIC) chief executive officer Datuk Ahmad Razlan Ahmad Razali today, who said SIC is mulling the future of the race in Malaysia. Razlan had said that a special meeting would be held this week with SIC’s major stakeholder, the Finance Ministry, with regards to the future of the sporting event in Malaysia.

He said consistently declining F1 ticket sales and TV viewership figures were among the factors behind the move.

Meanwhile, Khairy engaged Twitter users on the subject, and fielded questions. He said SIC should bid for less costly races, like the Japan GT, in response to a query on what can be done to avoid turning the Sepang circuit into a ‘white elephant.’

On a question as to why the Singapore Grand Prix had in contrast enjoyed success, Khairy said the Singapore leg benefited from its novelty factor. “It’s a night race in the city (which is done) no where else in the world. Even then, (their) ticket sales are down,” he said.

Khairy maintained that Malaysia should continue to host the MotoGP, which has maintained a sellout crowd. The Moto 2 and Moto 3 races, he said, also has the added boost of having Malaysian riders.

The minister said SIC could instead also spend more on development and increase public access to track days. “Local racers such as Jazeman Jaafar, Nabil Jeffri and Akash Nandy are having a tough time getting sponsors.

A fraction of the F1 hosting fee can help them and more,” he said. Jazeman is a driver with HTP Motorsports in the Blancpain GT Series and the Intercontinental GT Challenge. Nabil Jeffri races for Arden Motorsport in GP2.

Read More :


The comment from the concession holder and local operator of Malaysia GP argues that since Mercedes AMG Pertonas has been ‘monopolising’ the entire season of the FIA F1 circuit globally for a few season as overall champions, it has digressed on exciting for fans and TV viewers world wide.

Event in Malaysia, ticket sales have been dwindling down through the years. Also tv viewership.

In Singapore, where the city-state is offering the only night race in the 20 race circuit worldwide, is suffering the same symptoms.

It is unwise to sacrifice commercial takings at the expense pf branding when Petronas is synonymous with the Mercedes AMG Petronas team and SIC is their home turf.

It is like Italian GP at Monza, home of the Scuderia Ferrari F! team where the team is synonymous with Santander and Shell are two title partner sponsors.

Malaysia, through KBS, should find ways to strategically capitalise and optimise on the branding on Mercedes AMG Petronas F1 team and SIC, for the nation.


Maybe other global renown brands like Mutiara Crowne Hotel, Danna or even Pelangi, national carrier Malaysia Airlines and globally renown banking group Maybank, to come together and lend the strength of joint-co-branding for generating a new hype of interests amongst the motor sports enthusiasts, high net worth individuals and targeted corporations to commit into the Malaysia GP for the net three years.

The ability to continuously hype the attention on Malaysia as a high technology motorsports itinerary would also be beneficial if and when Lotus is ready to introduce their products, easier planned by 2018-2020. This will complement the industry.

Branding is a powerful tool. Minister Khairy Jamaluddin should be able to distinguish the merits of brands that are already riding high on the top without a real challenger, which should be optimise to the fullest all his strategic programs of ‘Fit Malaysia – the high-octane segment and capitalise on it.

After all, for Malaysia GP Tan Sri Mokhzani Mahathir considered of installing lighting facility all over at the GP track for the Malaysia GP could be race at night, it a proper built motorcading circuiting,

Giving it up  now where the figures are dwindling isn’t enthusiastic ways of marking up an mark, on a turf to be repackaged into greater heights, mainly on the consideration of lowered ticket sales.

Published in: on October 25, 2016 at 00:30  Leave a Comment  

Going concern economy

Malaysia is open for business and the facts are scientific evidence that the nation’s economy is healthy and regardless what detractors tried to manipulate and lie about it. Hence, it is going concern.

We would like to share a comment that one of our regulars here in this blog pertaining to Fourth Prime Minister Tun Dr. Mahathir Mohamad of “Failed economy”, shared in the last posting.

PM Najib’s performance in managing the economy in the first seven years of premiership is rather impressive, even taking Dr Mahathir’s first seven years’ performance.
It is a fact that Najib’s transformation policies did bring about steady reduction of annual budget deficit.
Comparatively to Dr Mahathir’s time his first budget saw a 16.3% deficit. six years later was brought down to -7.5%.
When he first started, the Malaysian Govt debt is 54% of GDP. Within six years, it shot up to 103.4% of GDP. 62% of that public debt was in foreign currency.
That simply translate Dr Mahathir borrowed 64% of GDP from foreigners.
Foreign reserves than was only at USD6billion. There was a minus current account. Then again, in Dr Mahathir’s first year as PM, the current account was at -13.4%.
How could the economy today is a “Failed state”?
There are more people working. The BOP in the current account is good. The unemployment rate is a little over 3%. It simply means those who are unemployed is by choice.

Income per capita is all time high.
Even market capitalisation of Bursa Malaysia is RM1.8 trillion. The foreign reserve is a healthy near USD100b.

The Malaysian economy is on-going concern. It’s evidently clear.


Malaysia was never a ‘Failed Economy’ then despite the ghastly figures. The fact is that, Malaysia is a going concern state.

The global rating agencies in the likes of Fitch, Moody’s and Standard and Poor issue very encouraging rating scores for the Malaysian economy.

It is organic. It is industrious. The people are productive and there  raw materials to work on and goods to produce.

Thus, the industrialisation grew and more and more exports are generated year on year. When economic activity grew, the support system also would naturally grew.

This include banking and other services, like food and beverage and other ancillary services.

Economic activity also promotes more demand for transportation, energy and above all, infrastructure.

Naturally as the population grow, the demand for dwellings increase as well. The trickle effect is endless.

If comparable against present day, the economic vital statistics is even much better. There fundamentals are strong and the economic base is very solid.

Therefore, the confidence on the principle of ‘going concern’ should be higher.

However, there are some rogue personalities who are trying to frighten the majority with the ghost stories about the economy is sick and the nation slow is failing.

To the majority, they are unable to decipher even basic economic data. Along with rising cost of living, they are easily bought over.

The fact, many ordinary people are not putting the measurement ruler to the right pole. They simply simplify everything with a common viewing glass.

With the exception of unaffordable homes in the major metropolitan, everything else should be in the right context of affordability.

A quick example is a car. The same car with equivalent specifications today is actually cheaper than what it was ten years ago. If adjusted to the purchase power parity, then the affordability of a common car is accessible to all.

This is true considering that more and more cars are being sold and even to group of consumers previously, are unable to have access to such goods at their current state.

More and more Malaysians are travelling and taking holidays, regionally and even further abroad.

Published in: on October 21, 2016 at 10:00  Comments (2)  

Sound Fiscal Management

Malaysian Federal Government had been having sound fiscal management since Merdeka, considering that economic growth had been steadily achieved which is reflective in the rakyat socio economic stature and quality of life, without the need to issuing USD17.5 billion in a single tranche of sovereign bond to raise money.

Financial Times story:

First Saudi bond sale raises $17.5bn in emerging market record

Debt issue part of a broader plan to shift economy away from its reliance on oil
Read next:
Saudi Arabia to sell up to $17.5bn in debut issue

© Bloomberg

YESTERDAY by: Elaine Moore in London and Simeon Kerr in Dubai
Saudi Arabia has raised $17.5bn for its debut sovereign bond issue, eclipsing Argentina’s bond sale earlier this year to become the largest debt issue by an emerging economy.
Investors put up orders of $67bn, enabling the kingdom to increase the amount borrowed and overtake the $16.5bn raised by Argentina as buyers queued up in search of yield.

“This is clearly a success for the country,” said Richard House, head of emerging markets fixed income at Standard Life Investments.

Saudi Arabia’s entrance into international markets is part of a broader plan to pivot the country’s economy away from its reliance on oil, as prices slump to half the level of two years ago. The sale is expected to herald a pipeline of new deals, including the world’s biggest initial public offering from state oil company Aramco.

“This is very significant moment for the kingdom — until this year it had not held external sovereign debt,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “They had to issue, given tight domestic liquidity conditions and stretched local funding sources, and we expect to see further issuance going forward — Saudi will become a fixture on global debt markets.”

The multibillion-dollar order book reflected heightened demand for debt issued by emerging markets this year, as interest rates in the developed world remain at historic lows. Argentina, Qatar, Turkey and Mexico have all sold large bond issues and the demand allowed Saudi Arabia to tighten prices. The sale comprised three maturities of five, 10 and 30 years offered at yields of about 2.60 per cent, 3.41 per cent and 4.63 per cent, respectively — slightly below expectations.

“Saudi is an attractive investment, but to be honest nearly every emerging market bond has been a success this year — investors are still desperate for yield,” said Mr House.

According to one investor, Asian buyers were responsible for a significant portion of orders, with investors such as pension funds and insurance companies known to be interested in buying the country’s long-dated bonds.

One investor said the issue was priced at a reasonable level, and would encourage interest in future expected bonds. “Saudi is just one big oil company, right, so there will be managers switching out some of their exposure to get the yield of the Saudi bond,” he said.

The bonds were sold around 40 basis points above debt issued by neighbouring Qatar, which carries a higher credit rating, and around 100 basis point wider than bonds sold by oil companies BP and Shell.

Saudi Arabia would have to embrace a new era of greater transparency as investors pore over its fiscal position and reform programme, he added.

“Bondholders will want to see that Saudi Arabia is continuing its fiscal consolidation — they won’t only want to see debt levels going up,” said Ms Malik.

Saudi Arabia’s economy is forecast to slow this year as oil prices remain low and the country engages in a costly war in Yemen, with the International Monetary Fund forecasting gross domestic product growth of 1.2 per cent this year from 3.5 per cent in 2015.

Related article

IMF cuts Saudi Arabia 2016 growth forecast as oil price stays low
Overall expansion of 1.2% lowest since 2009 as spending cuts hit non-oil sector
The IMF has welcomed the government’s Vision 2030 plan, which seeks to crimp spending, raise new non-oil revenue streams and bolster the private sector.

“This issue is important as Saudi Arabia will be in the market for a number of years, so they need to lay out a predictable plan of where they are going,” said Masood Ahmed, the IMF’s managing director for the Middle East, said in Dubai on Wednesday.

“And they need a credible fiscal consolidation plan — they need to show that they have a plan to bring down their financing needs.

In its pitch to prospective bond investors, Saudi Arabia’s Ministry of Finance acknowledged the damage caused to its economy by falling oil prices, which led the government to resume issuing local currency-denominated bonds last year for the first time in almost a decade.

The kingdom faces a budget deficit of 13 per cent of gross domestic product this year, below last year’s 16 per cent deficit, as spending cuts move from capital projects to public sector wage bill. Next year, the deficit is forecast to fall to 9.5 per cent.

Government debt, now at 5 per cent of GDP, is forecast to reach 20 per cent by 2017 as the state relies on borrowing rather than financial reserves to plug the shortfall.

Although oil prices have recovered from the decade-low of less than $30, they have struggled to sustain a rise above $50 per barrel.

Speaking at the Oil & Money energy conference in London on Wednesday, Saudi Arabia’s energy minister Khalid al Falih said the oil market had come to the end of a downturn, and that the time was now right to tighten supplies and raise prices.

Citi, HSBC and JPMorgan led the sale of debt on Wednesday, with Bank of China, BNP Paribas, Deutsche Bank, Goldman Sachs, Morgan Stanley, Mitsubishi UFJ, and NCB Capital also involved in the issue.


The expected 1.2% growth of the Saudi economy for the year is attributable for the kingdom heavy reliance on the oil and gas industry and the sluggish global market for almost two years has taken a toll even for Saudi.

The expected budget deficit of 13% of Saudi GDP for the year (compared to 16% for the last year) is rather alarming.

The Malaysian Federal Government 2016 budget deficit is 3.1% of GDP. When Prime Minister Dato’ Sri Mohd. Najib Tun Razak took over the reins of the nation in the midst of the global financial crisis pertaining to subprime financial scandal in the West, the Bajet 2010 Federal Government deficit against GDP is 5..2%.

By comparison, the Malaysian Federal Government external borrowings is RM210 billion. That was accumulated through time, with many socio-economic development programs and projects have been successfully managed to be generated from these borrowings.

Of that, RM199.5 billion is in bond.

This is the Bernama online summary on what to expect from this Friday, when Bajet 2017 is tabled in Dewan Rakyat.

Bajet 2017 Akan Mencergaskan Ekonomi Malaysia

Beberapa tingkat di bangunan Kementerian Kewangan masih bercahaya berikutan pasukan bajet dan warga kerja bertungkus lumus bekerja lebih masa bagi menyiapkan laporan Bajet 2017 yang akan dibentangkan Perdana Menteri selaku Menteri Kewangan, Datuk Seri Najib Tun Razak di Parlimen Jumaat ini

Oleh Christine Lim

KUALA LUMPUR, (Bernama) — Bajet 2017 akan terus mencergaskan ekonomi Malaysia, walaupun dilihat sebagai yang paling mencabar bagi Perdana Menteri Datuk Seri Najib Tun Razak.

Ini sejajar dengan kedudukan ekonomi Malaysia yang terdedah kepada ketidaktentuan ekonomi dunia, dengan pertumbuhan empat peratus pada suku kedua tahun ini, merupakan tahap pengembangan paling perlahan sejak suku ketiga 2009 ketika kemuncak krisis kewangan global.

Najib membayangkan kerajaan perlu kreatif dalam menangani kekangan untuk terus menyokong kebajikan rakyat dan menyediakan seberapa banyak bantuan, dalam Bajet 2017.

Oleh itu, kebimbangan rakyat akan ditangani dengan sewajarnya.


Kerajaan perlu mengurus kewangan secara berhemat, dari segi hutang dan defisit fiskal, ekoran unjuran pembayaran dividen yang lebih rendah oleh Petroliam Nasional Bhd dan kutipan cukai yang lebih rendah tahun depan.

Kerajaan juga komited mengurangkan defisit bajet kepada 3.1 peratus daripada Keluaran Dalam Negara Kasar (KDNK) tahun ini, seperti yang dibentangkan dalam pengubahsuaian bajet oleh Najib pada Januari semasa harga minyak mentah sekitar US$30 setong.

Pada harga minyak sekitar US$51 setong sekarang, ia memberikan kerajaan lebih kapasiti bagi meningkatkan perbelanjaan bajet, namun perlu berhemat memandangkan kedudukan kewangan masih dalam kedudukan sukar disebabkan ekonomi yang perlahan.

MIDF Research dalam laporannya yakin sasaran defisit 3.1 peratus itu boleh dicapai menerusi pelbagai langkah yang dilaksanakan setakat ini bagi menurunkan perbelanjaan dan melaksanakan projek pembangunan berasaskan keutamaan.

Risikonya ialah perdagangan dunia dan ekonomi terus lemah yang menjadi halangan utama kepada ekonomi Malaysia.


Berikutan ekonomi dunia yang terus lemah, wujud tekanan dari segi import dan akaun semasa yang akan terus menjejaskan ekonomi dan usaha kerajaan Malaysia untuk meneruskan perbelanjaan pembangunan.

Ekonomi Malaysia dijangkakan tumbuh 4.0-4.5 peratus tahun ini berbanding 5.0 peratus tahun lepas, selari dengan cabaran global, antara lain, angka perdagangan dan ekonomi China yang perlahan, pasaran pekerjaan AS yang lemah, kedudukan ekonomi di zon Euro yang rapuh serta impak pengundian UK untuk meninggalkan blok berkenaan.

Kadar faedah AS yang dijangkakan meningkat juga akan meningkatkan risiko pengalian keluar modal.

HSBC Global Research dalam laporan mengenai ekonomi Asia menyatakan bahawa risiko pengaliran keluar modal juga menjadi semakin ketara disebabkan lebihan akaun semasa semakin menyusut berbanding jangkaaan setakat tahun ini.

Berdasarkan kekangan fiskal, bajet yang dibentangkan pada 21 Okt ini antara lain dijangkakan mengandungi langkah terhad yang sama untuk golongan berpendapatan rendah dan sederhana seperti Bajet 2016.


Bagaimanapun, persekitaran ekonomi global yang masih rapuh akan memaksa kerajaan meningkatkan peruntukan bagi merangsang permintaan domestik dan perbelanjaan pengguna.

Profesor Ekonomi Fakulti Perniagaan Universiti Sunway, Dr Yeah Kim Leng berkata, kekangan fiskal akan menyaksikan keperluan untuk memberi keutamaan perbelanjaan ke atas bidang teras yang penting yang akan menjamin keselamatan sosial serta menjana pertumbuhan perniagaan dan pekerjaan.

“Dengan had ke atas perbelanjaan, terdapat keperluan untuk menangguhkan projek yang tidak memberi kesan segera ke atas ekonomi,” kata Yeah dalam temu bual dengan Bernama.

Bagi memaksimumkan kesan ke atas perbelanjaan, beliau juga mencadangkan kerajaan melaksanakan projek perkongsian awam-swasta.

Yeah menyokong pelepasan cukai atau pemotongan cukai untuk pertengahan 40 peratus isi rumah atau kumpulan M40 bagi menangani peningkatan kos sara hidup.

Peruntukan untuk perumahan, pendidikan, penjagaan kesihatan dan latihan, katanya, adalah amat penting bagi menyokong isi rumah di bawah 40 peratus atau kumpulan B40 itu.

Kategori M40 terdiri daripada mereka yang berpendapatan antara RM3,860 dan RM8,319 sebulan manakal kategori B40 yang berpendapatan dari RM3,855 dan ke bawah.

Bagaimanapun, jangkaan pertumbuhan ekonomi empat hingga 4.5 peratus tahun ini akan terus memberikan peningkatan sederhana kira-kira tiga hingga empat peratus dalam pendapatan kerajaan, kata Yeah dengan menambah, pendapatan tahun depan akan disokong oleh prospek cerah dalam ekonomi global.

Beliau melihat keperluan untuk menawarkan pelbagai insentif bagi merangsang pertumbuhan ekonomi dan mengekalkan keyakian pelabur, di samping menegaskan yang rancangan mengumpul dana melalui lelongan spektrum telekomunikasi juga akan meningkatkan tabungan negara.


Sementara itu, Ketua Pegawai Operasi Perisian Senarai Gaji Dalam Talian, Toine Vaessen berharap bajet akan datang akan memberi tumpuan kepada membantu perusahaan kecil dan sederhana (PKS), berikutan sumbangannya yang semakin meningkat bagi merangsang ekonomi.

“PKS adalah nadi ekonomi, menggunakan lebih 65 peratus daripada keseluruhan tenaga kerja di Malaysia dan menyumbang 36.3 peratus daripada keseluruhan KDNK,” kata Vaessen kepada Bernama.

Dalam satu kajian yang dijalankan baru-baru ini mengenai keadaan ekonomi Malaysia, beliau berkata, ramai pembuat keputusan PKS merasakan ekonomi digital akan menawarkan banyak peluang untuk PKS.

Oleh itu mereka ingin melihat bajet akan datang memberi tumpuan untuk membantu PKS dengan transformasi digital ini dari segi infrastruktur, pelaburan, latihan, insentif cukai serta pelbagai inisiatif kerajaan yang lain.

Beliau berkata, walaupun ekonomi ketika ini lembap, PKS tetap positif mengenai prospek jangka panjang Malaysia.

“Ini menunjukkan pemilik PKS percaya kita sedang melalui tempoh yang sukar sebelum ekonomi kembali pulih,” katanya.

“Asas untuk ekonomi Malaysia yang kukuh, iaitu kestabilan, kepelbagaian dan ketahanan masih wujud. Pertumbuhan KDNK kini serendahempat peratus dan pembuat keputusan PKS menjangka kita akan kembali mencatat enam peratus dalam beberapa tahun akan datang,” tambahnya.


Bajet 2017 juga dijangka merancakkan lagi momentum perkembangan tahunan bagi mencapai matlamat penggal pertengahan yang ditetapkan Rancangan Malaysia Ke-11 (RMK11).

Ia juga dijangka menyasarkan kumpulan B40 dan M40 dan kerajaan dilihat akan meneruskan usaha membantu kebajikan kumpulan berkenaan menerusi pemberian Bantuan Rakyat 1 Malaysia (BR1M) serta menangani kebimbangan mengenai perumahan mampu milik.

RHB Research dalam nota penyelidikannya, menjangkakan peningkatan peruntukan BR1M akan ditambah bagi merangsang perbelanjaan pengguna.

Firma penyelidikan itu juga percaya kerajaan akan mengumumkan perbelanjaan bajet lebih tinggi bagi 2017 berbanding pada tahun lepas.

Bagi menggalakkan usaha pemilikan rumah, kerajaan berkemungkinan bertindak melonggarkan kaedah penilaian pinjaman, meningkatkan pengeluaran caruman Akaun 2 Kumpulan Wang Simpanan Pekerja (KWSP) serta memperkenalkan lebih banyak skim Perumahan Rakyat 1Malaysia.


Antara kebimbangan disuarakan menyentuh aspek gaji lebih rendah serta pengurangan peruntukan bagi pendidikan pada tahun lepas.

Menurut Institut Penyelidikan Khazanah (KRI), gaji rendah serta pengangguran belia sememangnya membimbangkan selain peningkatan mendadak harga makanan berbanding inflasi secara menyeluruh.

Malah, berdasarkan laporan Keadaan Isi rumah II KRI membabitkan pembangunan kesejahteraan isi rumah bagi tempoh antara 2012 dan 2014, pertumbuhan pendapatan isi rumah Malaysia tidak dipacu oleh pertumbuhan gaji dan pendapatan.

Bagi tempoh 2012 hingga 2014, purata pendapatan isi rumah meningkat kepada Kadar Pertumbuhan Tahunan Terkumpul (CAGR) masing-masing sebanyak 10.8 peratus dan 12.4 peratus, namun kadar pertumbuhan nominal gaji dan pendapatan terbukti lebih perlahan pada 3.3 peratus.

Berdasarkan statistik baru-baru ini, median gaji di Malaysia pada 2015 adalah RM1,600 sebulan.

Ia turut membangkitkan aspek kewangan isi rumah yang terus berdepan tekanan dengan nisbah hutang isi rumah daripada KDNK adalah 89.1 peratus pada 2015 yang mana sebahagian besar beban hutang itu membabitkan pembiayaan bagi pembelian rumah.

Laporan KRI itu turut menunjukkan pekerjaan yang berteraskan kemahiran menawarkan gaji lebih tinggi, namun banyak syarikat Malaysia sebaliknya mengakui berdepan kesukaran mendapatkan modal insan yang memiliki kepakaran sedemikian.


Bank Dunia telah menyatakan keperluan untuk pembaharuan struktur dalam Malaysia ekonomi terutamanya dalam modal insan, liberalisasi dan daya saing selaras dengan aspirasi negara untuk bergerak ke arah sebuah negara berpendapatan tinggi.

Oleh itu, Malaysia tidak boleh berpuas hati dengan kejayaan dan melihat kebimbangan yang dibangkitkan berikutan laporan Forum Ekonomi Dunia 2016-2017 baru-baru ini, yang menunjukkan penurunan ranking daya saing global Malaysia pada kedudukan ke-25 daripada 18 pada tahun lepas.

Masih terdapat keperluan untuk melihat bidang yang memerlukan perhatian lanjut dan penambahbaikan bagi meningkatkan keyakinan dalam kalangan pelabur termasuk kepentingan amalan tadbir urus untuk menghalang sebarang kemungkinan ketirisan dalam kewangan dan bajet kerajaan.

Dalam Bajet 2016, peruntukan berjumlah RM267.2 bilion, dengan RM215.2 bilion adalah untuk perbelanjaan mengurus, RM50 bilion untuk perbelanjaan pembangunan dan baki RM2 bilion untuk simpanan luar jangka.

Sementara itu, bajet yang ubah suai, telah menggariskan 11 langkah penyusunan semula untuk memastikan ekonomi dan kewangan kekal pada trajektori yang tepat.

Mengenai perbelanjaan pembangunan, tumpuan akan diberikan kepada projek-projek dan program dengan kesan pengganda yang tinggi, kandungan import yang rendah dan fokus terhadap kesejahteraan rakyat.

Projek-projek yang akan diberi keutamaan termasuk pembinaan rumah mampu milik, hospital, sekolah, jalan raya dan pengangkutan awam serta keselamatan manakala projek lain dalam kajian akan dijadualkan semula.

Langkah ini dijangka dapat mengurangkan komitmen tunai sehingga RM5 bilion.

RHB Research menganggarkan peruntukan sebanyak RM45 bilion dalam perbelanjaan pembangunan kasar bagi 2017, lebih rendah daripada unjuran RMK11 tetapi masih jauh lebih tinggi daripada anggaran sebanyak RM40 bilion pada 2016.

“Peningkatan dalam perbelanjaan pembangunan kasar berkemungkinan akan memberi manfaat kepada industri pembinaan secara umum dan mengurangkan kesan daripada pelaksanaan cukai barang dan perkhidmatan serta perbelanjaan modal yang lebih perlahan oleh perniagaan berikutan harga minyak yang rendah dan persekitaran ringgit lemah,” kata RHB Research.

Antara projek-projek infrastruktur yang dirancang atau sedang dilaksanakan termasuk projek keretapi laju Kuala Lumpur-Singapura (RM34.8 bilion), Aliran Transit Massa (MRT) Lembah Klang (MRT2) dan Transit Aliran Ringan 3 (LRT3) (masing-masing RM36 bilion dan RM9 bilion), landasan keretapi dari Gemas ke Johor Bharu sepanjang 197 kilometer, lebuh raya Pan Borneo di Sarawak dan rancangan pembinaan ribuan kilometer jalan baru di kawasan luar bandar.

“Bagaimanapun, sesetengah projek infrastruktur ini seperti projek MRT dan LRT, dilaksanakan melalui pembiayaan yang tidak dimasukkan dalam imbangan kira-kira,” jelas RHB Research.

Oleh itu, pada asasnya, Bajet 2017, akan berusaha untuk memenangi hati rakyat semasa keadaan yang tidak menentu berikutan faktor luaran, sebagaimana kata-kata Presiden Amerika Syarikat Abraham Lincoln, “semua manusia berhak mendapat peluang yang sama untuk meraih kekayaan “.

Bajet 2017 tentunya akan mencergaskan lagi negara dan ekonomi.



The fact is that despite the economic growth steadily 4-4.5% the past seven years, the Federal Government deficit against GDP has been on the constant angle of reduction.

It simply translate that the Federal Government has been borrowing less to achieve the desired socio economic development programs sustainable to promote steady GDP growth.

This is far from Fourth Prime Minister Tun Dr. Mahathir’s suggestion of the nation is spiralling into a “failing economy”. The first half of 2016, the GDP stands at RM590 billion. The industrial production index is 125 (2010 as 100 base point). The employment index is almost 97% of workforce.

The surplus of the current account for the first half is RM6.9 billion.

When Prime Minister Najib took over the helm of the nation, within one year he introduced the Economic Transformation Plan (ETP). The Federal Government will no longer be over reliant on oil and gas as the single largest revenue contributor.

In hindsight, his fiscal strategy is very much demonstrated today.

*Updated 1800hrs

20th October 2016

Prime Minister Najib Tun Razak today outlined the major themes of the 2017 Budget that he will deliver to Malaysia’s parliament tomorrow.
Noting that some commentators have said this will be a General Election Budget, the Prime Minister instead stated:

*“This is a commitment Budget. Others may put short-term political gain first, but this government will not.* ‎

*“We commit to ensuring that the economic fundamentals of the nation remain resilient and strong – including policy on deficit targets‎, spurred economic activity, and the long-term health of the financial system.* ‎

*“We commit to being prudent and creative in optimising expenditure, to ensure delivery for the people.*‎

*“And we commit to a comprehensive, inclusive Budget that will fulfil our promises to the people.”*‎

Noting that during a year when advanced economies are expected to register growth of only 1.6 percent, Malaysia’s economy is on course to grow between 4 and 4.5 percent, the Prime Minister said: ‎

*“Despite the challenging global environment, the measures we introduced in last year’s Budget have helped ensure that the economy remains resilient and continues to grow. We have a plan, and it is working.*‎

*“We will continue to ensure economic indicators – such as inflation levels, growth rates and debt levels – remain strong and resilient, reflecting the core fundamentals of the economy.* ‎

*“Despite fiscal pressures, inflation has been kept at low levels, and the Malaysian people as a whole are better off today than they were a year ago. Indeed, we are now an upper middle income country.*‎

*“We continue to fulfil our promises to the people in a manner that is fair and inclusive. We are on the right trajectory, with the economy expected to improve still further in 2017 with growth of up to 5 percent.*‎


*“At the same time, we recognise that there are challenges. We must put in place policies that address long-term structural changes, and will continue our efforts to improve the Bottom 40 as well as the Middle 40. Our focus is on both the people economy and the public economy. The overall happiness and welfare of the people is key objective.”*‎


The Prime Minister said he would make further announcements on infrastructure, development, public transport and health, fiscal incentives for small and medium enterprises, and human capital and skills training. He said:‎


*“In line with our commitment to put the people first; we intend to accelerate economic growth, empower human capital, drive education, increase connectivity, strengthen inclusive development and improve public service delivery.”*‎

In order to do so, the Prime Minister said that a major focus of the 2017 Budget will be on raising the disposable income of the rakyat; encouraging upscaling, reskilling and entrepreneurship training; mitigating the rising cost of living; providing more affordable houses, and funds for maintenance; substantial measures on education; and allocations for the provision of quality healthcare services.

The Prime Minister concluded by saying:
*“The safety and security of all Malaysians remains my biggest priority. We will intensify our efforts and allocate more resources to our fight against extremism and crime.”*‎


*For more information:*
Please see
During the Budget speech:
Live stream on http://www.NajibRazak.com
Live stream on Najib Razak Facebook –
Live Tweets on Najib Razak Twitter (Bahasa Malaysia) –
Live Tweets on PMO Malaysia (English) –
After the Budget Speech 
Full text of speech immediately available (Bahasa Malaysia and English) –
Explanatory infographics – or Najib Razak Email (subscribe via

Published in: on October 19, 2016 at 23:59  Comments (1)  

What “House Arrest”?

Fourth Prime Minister Tun Dr. Mahathir Mohamad’s credibility probably due to inconsistent faux pas which include seditious ones is the real challenge for him to be taken seriously after habitual lies to justify making his personal obsession a national political agenda.

FMT story:

Mahathir hands over Citizens’ Declaration to King

Nawar Firdaws | September 16, 2016
Former prime minister has audience lasting more than an hour with the Agong at the Istana Anak Bukit in Kedah.

PETALING JAYA: Former Prime Minister Dr Mahathir Mohamad has had an audience with the Yang di-Pertuan Agong, Tuanku Abdul Halim Mu’adzam Shah to hand over the Citizens’ Declaration, bearing 1.4 million signatures.
Former Umno member Khairuddin Abu Hassan told FMT that he accompanied Mahathir to Istana Anak Bukit in Alor Setar, Kedah, for the “historical” meeting yesterday.
“They (Mahathir and the King) met about 4.30pm and the discussion went on for about an hour 15 minutes.
“It was just between the two of them. So whatever was discussed inside, I will let Tun Mahathir reveal it,” Khairuddin said.

Mahathir’s special officer Sufi Yusuf also confirmed to FMT that the 91-year-old former prime minister went to the Istana bearing “a set of documents”.


It is very inconsistent for His Majesty SPB YDP Agong to grant him an audience, if the latter “Is under house arrest”.

On 19 May 2016 in his quest to demonise Prime Minister Dato’ Sri Mohd. Najib Tun Razak, for the explicit purpose for Prime Minister Najib be ousted, Dr Mahathir made such pronouncement.

The Star story:

Friday, 27 May 2016 | MYT 1:44 PM

Dr Mahathir to be summoned over ‘house arrest’ claim


KUALA LUMPUR: Tun Dr Mahathir Mohamad (pic) will be asked to give his statement to the police regarding his claim that the king and other rulers had been placed under house arrest.

When met at the Pusat Perubatan Universiti Kebangsaan Malaysia (PPUKM) during on Friday, Deputy Inspector-General of Police Datuk Seri Noor Rashid Ibrahim said that police are currently looking into the matter and would seek clarification from the former prime minister.

“We will take his (Tun Dr Mahathir) statement when the time is right,” he said.

On May 23, Malaysian Anti-Corruption Commission adviser Tunku Abdul Aziz Tunku Ibrahim lodged a report against Dr Mahathir regarding his claims, and said that allegations were “false and mischievous”.

Dr Mahathir had claimed that the Yang di-Pertuan Agong and other rulers had been placed under house arrest to prevent them from receiving the signatures of those who supported the Citizens’ Declaration.


It is believed because of frustration arisen from all of his stunts since March 2015 to oust Prime Minister Najib, failed miserably.

Details of the discussion of His Majesty and Dr Mahathir has been blogged by Raja Petra, which highlighted the inability of Dr Mahathir to convince His Majesty of the claimed “1.4million signatures of the ‘Deklarasi Rakyat’ petition”.

If Raja Petra’s story is accurate, then it is utter shameful Dr. Mahathir even tried to hoodwink the King with his false support to a cause he concocted out of personal obsession.

He has been manipulating, lying, exaggerating and working with the Neo Con Jewish media, to see through that Prime Minister Najib is ousted. This is on top of Dr Mahathir’s call for foreign intervention to achieve his obsession.

Published in: on September 17, 2016 at 22:59  Comments (6)  

“Who did Mueller sleep with?”

Outgoing MAS CEO Christoph Mueller recent statement to German media about some of the staff “Were sleeping on jon” the justification why 6,000 persons thought to be the more productive ones of the now defunct national carrier previously known as Malaysia Airlines Berhad, irritated some of the affected professionals.

Malaysiakini story:

Outgoing CEO: Many MAS employees were doing nothing, some sleeping

136 comments Published 17 Jun 2016, 4:16 pm Updated 17 Jun 2016, 9:29 pm

Outgoing Malaysian Airlines Bhd (MAS) CEO Christoph Mueller said he had to cut 6,000 jobs because many of the 20,000 employees were “doing nothing”.

He said he was not impressed with the state that MAS was in when he first took over the Malaysian flag carrier.

“Despite all the announcements by the government, a turnaround wasn’t initiated by the time I became CEO.

“Many of the 20,000 employees who worked for the airline had nothing to do. In fact, when I walked through the hangars, people were sleeping. That’s why I had to radically cut 6,000 jobs,” Muller told German broadcaster Deutsche Welle (DW) on its web portal.

He said MAS was in dire straits before he took over because of poor personnel management and a bloated workforce.
He said that was why he laid off 6,000 workers and streamlined the firm’s operations.

Mueller said MAS also suffered from a bloated and overpriced supply chain, partly because the airline bought products from suppliers at prices 20 to 25 percent higher than the market value.

“Everything from pens to US$200-million aircraft were purchased at these rates. I am not saying that we were bad negotiators, and in any case corruption is punishable also in Malaysia,” he told DW, delicately explaining the matter.

Mueller also pointed out that MAS had about 20,000 suppliers and, as a result, the glut made it difficult for the airline to get a volume discount from anyone.

“Since I took over, we have managed to downsize the number to about 4,000 suppliers. But our goal is to cut it further to some 2,000. By doing this, we’ve reduced our procurement costs,” he said.

He noted that the airline has had a spate of bad luck in recent years – the disappearance of MH370 and shooting down of MH17 that gave it bad press – but expressed incredulity that the carrier could have been in the red at all.

“Malaysia Airlines has a proud heritage. It’s known as the epitome of Asian customer service. Given the country’s macroeconomic conditions, with economic growth averaging over five percent for 55 years now, it’s difficult not to make money with this airline,” he said.

He observed that the previous so-called turnaround plans announced for the airline were half-hearted at best.

However, Mueller is confident that with the management reforms he has put in place, MAS will be in the black again by 2018.

The German will officially step down in September this year – well ahead of his initial three-year contract, citing personal reasons.


Mueller statements irked many, who are known to the rising star within Malaysian Airlines were made to leave since the exercise to terminate the 6,000 staffs came from the winding up of the original formerly listed company and the setting of an SPV.

“If Mueller said we were sleeping on the job, let me ask who is he sleeping with?”, remarked a veteran of Malaysia Airlines of 27 years service before he was summarily sacked because of Khazanah’s corporate manoeuvres.

He was believed to be referring to a rumour about a CEO of GLC who summarily resigned despite non completion of contract period after his wife found out about his extra-marital affair.

Mueller’s other justifications about Malaysia Airlines’ poor financial position is about acquiring equipments and goods from vendors, which is 15-20% higher than market value.

That is quite baffling because since almost 20 years ago, Malaysia Airlines is a plc listed on then Kuala Lumpur Stock Exchange (now Bursa Malaysia). Being a plc means there stringent processes of acquisition through the tender board, board pf directors and perhaps on some assets like aircrafts, involving Khazanah and Ministry of Finance.

These processes then had to under a series of audit process, either internally which the management eventually had to answer to the audit committee and a statutory external auditor.

Under Mueller, Malaysia Airlines Berhad shed a lot of its traditional routes which include Amsterdam and Paris and the new carrier is focusing of becoming a regional airline.

“If Mueller said we slept on the job and now we are no longer there, how is the company getting along? Is he making encouraging profits?”.

Now that Mueller is not even completing his contractual term, if it is true that what he said about the untimely termination of 6,000 staffs last September and 6,000 more expected by this September would eventually be the net loser to the German’s and Khazanah;s corporate games.

Published in: on June 18, 2016 at 16:00  Leave a Comment  


Proton would see a transformation of a new leaf there on, now founder and dictatorial remote-controller Fourth Prime Minister Tun Dr. Mahathir Mohamad is completely out of the picture after 33 years.

Malay Mail Online story:

Era of Dr M’s meddling in Proton over, says Najib


PUTRAJAYA, June 14 ― Proton Holdings Bhd is entering a new chapter where it will no longer face the interference of politicians such as Tun Dr Mahathir Mohamad, said Prime Minister Datuk Seri Najib Razak.

At the launch of the company’s new Perdana sedan today, Najib said such meddling in the decision-making process at Proton was why the carmaker needed billions in government assistance to remain viable.

“There has been too much political interference in Proton’s strategy, management ― including of personnel ― and business model. We saw the results of that early this year. A manufacturer which should be a source of national pride was facing a very difficult situation.

“Now, I am pleased to say, there have been significant changes at the top levels of Proton. Tun Mahathir’s era of political interference has come to an end,” Najib said.



Prime Minister Dato’ Sri Mohd. Najib Tun Razak said this during the launch of Proton’s flagship model Perdana.

He also wanted Proton to be less reliant on the domestic market but also explore the opportunities as a car for the export market.

NST story:

Proton must become less reliant on Malaysian buyers, says Najib


BY AZURA ABAS – 14 JUNE 2016 @ 11:16 AM

KUALA LUMPUR: Proton must become less reliant on Malaysian buyers and build up a strong export programme. Prime Minister Datuk Seri Najib Razak, addressing the future of Proton, said the government’s assistance to the national carmaker was subject to conditions, such as the company identifying a strategic foreign partner.

The government in April had approved a RM1.5 billion loan to Proton Holdings to enable the company to pay for components that had been supplied. The loan, Najib stressed, was not a bailout as it came with strong conditions.

“We stepped in because the well-being of the people is always our first concern. We will never fail to support Malaysian workers and suppliers. We will always fight to ensure that no one is left behind.

” The assistance was conditional on Proton meeting stringent standards of professional management going forward; ensuring that the company has a model for long-term sustainability; and immediately identifying a strategic foreign partner.

“The loan was not a blank cheque. The company must prove itself, both in the domestic and the international markets. Ultimately, Proton must build up a strong export programme and become less reliant on Malaysian buyers.”

The prime minister was speaking at the launch of the all-new Proton Perdana today. The Perdana, now in its fourth generation, is developed via a strategic collaboration with Honda Japan Ltd. It is priced at RM113,888 for the 2.0 variant and RM138,888 for the 2.4 variant. It has already received around 900 pre-bookings. The company expects to sell around 3,000 units by year-end.

Read More :


Recently Malaysian Government agreed to provide Proton with conditional financial packages to the amount of RM1.5b, to alleviate its current and strategic issues.

Proton is required to revamp and restructure its management and use some of the provided funds to immediately address working capital issues such as long list of local vendors’ debt.

The company which started as the National Car Project is expected to find a strategic partner, to ensure the required investments for research and development, which is deemed necessary for products to remain relevant in a very competitive market.

Proton market share in Malaysia dropped from its peak of 76% in 1993 to the current 18%.

Proton also is expected to improve its marketing programs, to ensure the current products market acceptability.

Published in: on June 14, 2016 at 12:00  Comments (6)  

Playing with three sticks

The buzz being whispered about town going back and forth between market punters, gossipers and arm-chair analysts that the sudden departure of a CEO of a GLC with “Personal issues” as the excuse, is about a very delicate if not intimate ‘personal matter’.

The strange bit about the resignation that the man is only letting go of his executive function and responsibility but remained as a member of the Board of Directors (BoD).

The said married man is believed to have discovered for an intimate relationship, here in this country. It is also believed that the matter has been brought up to the attention of some of the BoD members, by his own spouse.

Across the board, this is the second surprise announcement made regarding key personalities of GLC within the Khazanah Group.

Earlier was CIMB Chairman Dato’ Seri Nazir Razak, who decided to take leave from CIMB (nothing said about Khazanah) after the recent Wall Street Journal revelation of his personal involvement of political funds channeled of the amount USD7 mil. The buzz-cock suddenly felt it was the ‘right thing to do’ (to go on leave pending investigations), for a brotherly favour he did at the same time his eldest brother Prime Minister Dato’ Sri Mohd. Najib Tun Razak was handling USD690 mil of donations, believed for political purposes.

The said CEO who had summarily resigned only completed eight and half month stewardship of a New Co. which was formed as part of the turn-around and rationalisation plan, is said to have signed a contract for three years of service.

Whether issue of morality is part of the consideration for him to remain as BoD, to serve for the remaining duration of contract cannot be ascertained.

However, at the rate of the gossip it is bound that the matter would eventually be raised by some of the 6,000 (mostly able and very productive loyalists) made redundant of the Khazanah plan to revive the GLC, in the rough tones of “They put a fucker in charge, after our lives were fucked!”.

After all, most of the 6,000 made jobless are people with families, of Malay-Muslim conservative background where infidelity is a major morality matter.

Published in: on April 20, 2016 at 17:00  Comments (3)  

Credit worthy and RM200b GDV

In the disbelief of those who thrives on controversies, scandals, conspiracies and refuse facts, 1MDB actually resolved their financial issues of “Mismatch of asset acquisition and cashflow to serve borrowings”.

The ‘Rationalisation Plan’ which President and Group Chief Executive Director Arul Kanda Kandasamy presented and got Cabinet approval on 29 May 2015, had proven effective to resolve all financial issues clawn into the Group’s coffer as a result of poor commercial decisions.

Slightly less that two weeks ago, 1MDB President Arul already pre-empted that all the financial issues of the strategic investment company fully owned ny Ministry of Finance Inc would be resolved very soon.

The Star story:

Sunday, 27 March 2016

Arul Kanda: 1MDB to announce other debt payments within weeks

PETALING JAYA: 1Malaysia Development Bhd (1MDB) will make announcements on its other debt payments in two to three weeks, says its president Arul Kanda Kandasamy (pic).

He said the 1MDB had not incurred any new debt and would be paying off its current debts.

“In the next two to three weeks, we will be making announcements about us paying our debts,” he said in an interview with Astro Awani.

Arul Kanda said that he was brought into 1MDB to help rationalise the debts of the investment fund, among others.

Among the steps 1MDb would be taking in the future was to avoid adding on to its debts, he said.

“We won’t start any new project. We will increase monitoring of the governance of 1MDB,” he said, adding that another way to move forward was by co-operating with the investigation on the investment fund.

He said that the decisions made about 1MDB were similar to dealing with “a house after an earthquake”.

“The impact is on the structure of the house and the residents are our projects such as Edra (Edra Global Energy Bhd) and TRX (Tun Razak Exchange).

“We have made a choice to ask the residents to move out,” he said, referring to the sale of Edra and the plan to sell TRX.

He admitted that the investment fund was facing several problems but insisted that the issues were purely about business.

“It’s true that there are issues within 1MDB but they are business issues.

“They should not have been politicised,” he said.

Such politicisation of the situations facing 1MDB had caused confusion and anger among Malaysians, he added.

When asked about financier Low Taek Jho, known as Jho Low, Arul Kanda said that he was not related to 1MDB but its predecessor, Terengganu Investment Authority (TIA).

“He left in May 2009 before the Finance Ministry took over TIA and changed it to 1MDB,” he said.


Like a rail service, they did exactly that and on time. In the past two weeks, 1MDB has made a total repayments of RM4.6 billion as part of its successful rationalization plan.

1MDB President Arul Kanda has said the state-owned company will not have any more short-term debt and bank loans after the repayments.

It will have a cash surplus of at least RM2.3 billion after settling the debt.

Media statement on the RM950 million standby credit facility provided by the Government:


1MDB Media Statement 8 April 2016 —

1MDB is pleased to announce that its subsidiary, Plenitude Mentari Sdn. Bhd., has repaid in full, all the principal and interest, for the RM950 million Standby Credit Facility provided by its ultimate shareholder, the Government of Malaysia. This facility was entered into on 27 February 2015, further to the strategic review announced on 18 February 2015, as a direct response to the cash-flow mismatch faced by the company.

The Standby Credit Facility helped to stabilise the company, at a time when it was under severe attack from multiple parties and had no other financing options. With the stability, 1MDB and MoF Inc. were then able to develop and implement the rationalisation plan, the success of which has resulted in the Standby Credit Facility being repaid in full.


The media statement on the repayment of the Powertek Group acquisition, which is a substantial amount of RM3.0 billion Syndicated Term Loan Facility has been settled.


1MDB media statement 1 April 2016

1MDB is pleased to announce that its subsidiary, Powertek Investment Holdings Sdn Bhd, has fully settled the remaining RM3.0 billion balance of an RM3.5 billion Syndicated Term Loan Facility.

The loan facility was entered into in May 2014 with a syndicate of domestic banks, led by Maybank. It has now been fully prepaid, in advance of the original maturity date of May 2024, as part of the successful 1MDB rationalisation plan.


The media statement of the RM700 million syndicated term loan facility:


1MDB Media Statement 25 March 2016

1MDB is pleased to announce that its subsidiary, Edra Energy (Langat) Sdn. Bhd., has fully repaid an RM700 million Syndicated Term Loan Facility to a consortium of domestic banks, per the terms of the loan agreement.

The loan was first drawn in 2012 to partially finance 1MDB’s acquisition of its energy assets.

This debt repayment and overall debt reduction is a tangible result of 1MDB’s successful rationalisation plan.


Group President Arul and his leadership, very much rationalized, restructured and resolved all the assets of 1MDB Group and served all its financial commitments, with substantial bits to spare.

All these productive moves and progress are made within less than 1year, amidst very intense ‘noises’, especially the incessant political pressure led by none other than Fourth Prime Minister Tun Dr. Mahathir Mohamad and band of motley crew in unbelievable political circus stunts.

This being harped on and hyped up continuously by pro-Opposition and Neo-Con Jewish controlled media, which paints totally far from facts picture about 1MDB and all the unsubstantiated alleged white collar criminal acts within and about the Ministry of Finance Inc. strategic investment company.

Now that the Public Accounts Committee which consist of MPs of both sides of the bench that already convened and investigated the relevant parties of and within 1DMB, with the full authority of His Majesty’s Parliament, the capital matters have been resolved.

The Executive was never involved in the decisions made and operations and implementations executed by the Management. Yet, rumours compounded on the scandals and contentious stories about 1MDB had been lies upon lies, harped on and hyped up.

It was clear from the start it was part of the demonisation of Prime Minister Najib to bring him down. The cash-flow strapped 1MDB Group caused by mismatch and poor aggregation of commercially acquired asset building manoeuvres through borrowings was the best vehicle for the Anti-Najib Campaign to ride and bastardise on.

Everyone had something bad to mud-pelt 1MDB, despite not having the full knowledge and comprehension of the subject matter in totality.

Even at one some few occasions, CIMB Chairman Dato’ Seri Nazir Razak took nasty swipes which include the summary dismissal of CIMB Islamic Bank CEO Badlisyah Ghazali. It was about Badlisyah’s personal opinion on the fake SWIFT codes pertaining to the alleged transfers into bank account of Prime Minister Najib.

Now all of the wounds from the financial claw-back have been resolved, 1MDB as Group is free to move forward.

On plate is the Tun Razak Exchange (TRX), which shall be the most valuable property square mile in the nation and provide very high productivity in Prime Minister Najib’s strategy of taking Malaysia into a high value economy.

Upon completion, TRX is expected to have a gross development value (GDV) of RM 40 billion.

There is still Bandar Malaysia, where 1MDB pass the burden to continue and deliver the mega development of the 486 acres of Bandar Malaysia to the Iskandar Waterfront Holdings – CREC consortium, as the 60% controlling party.

iProperty story quoting the Bernama story:

Bandar Malaysia total GDV estimated at RM160 Billion, says IWH

By The News Team on Mar 22, 2016

KUALA LUMPUR, March 21 — Bandar Malaysia is estimated to involve a cumulative gross development value (GDV) of RM160 billion and will be completed over the next 20 years, says Iskandar Waterfront Holdings (IWH) Executive Vice Chairman Tan Sri Lim Kang Hoo.

Lim said the China Railway Group Ltd (CREC), which acted as a first mover in Bandar Malaysia with its US$2 billion (US$1=RM4.07) commitment to building its regional centre, represents 30% of Bandar Malaysia’s first phase project.

“There will be three phases of development in Bandar Malaysia.

“We will bring in the investors to come in and join hands to develop with us, just like what we are doing in Iskandar Malaysia,” Lim told reporters at a press conference.

CREC President Zhang Zongyan earlier announced that the company would invest US$2 billion to build its regional centre in Bandar Malaysia and would consolidate all its current regional businesses and operations once its new headquarters in Bandar Malaysia is completed.

Zhang made the announcement in the presence of Prime Minister Datuk Seri Najib Razak, Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin and several cabinet ministers at a ceremony here today.

CREC is a Chinese state-owned company and a Global Fortune 500 company which was ranked 71st in 2015.

At the same press conference, Zhang said CREC’s project in Bandar Malaysia will kick off next year and may create up to 10,000 jobs.

CREC’s development blueprint includes an integrated underground city modelled after Canada’s Montreal underground city, with dedicated space for financial and commercial centres, tourism and shopping facilities, high-end corporate offices, theme park and themed theatres, said Zhang.

On the high-speed rail project, Zhang said the company may bid for the project if it is invited to participate in the tender.

The Bandar Malaysia development is being developed under the public-private partnership (PPP) model with the Ministry of Finance holding 40% of the development company and the IWH-CREC consortium holding 60%.

IWH is also a PPP company with the Johor State Government, through Kumpulan Prasarana Rakyat Johor, owning 40 per cent of the company and the remaining 60 per cent by Credence Resource Sdn Bhd, a company controlled by Lim.

Bandar Malaysia is situated at the old airport site in Sungai Besi just seven kilometres from Kuala Lumpur city centre.




According to IWH, a GDV of RM160 billion could be realised from Bandar Malaysia. The two, would aggregate a whopping RM200 billion in GDV. That is substantial contribution from the MOF Inc. strategic investment company.

That is not withstanding the other parcels of land which 1MDB is holding and could be turned into very productive development project, for each respective areas.

Group President Arul summed everything up quite nicely.

Straits Times story:

My job is done, says chief of embattled 1MDB fund Arul Kanda

Arul Kanda, president of 1MDB, says his job was to turn the fund around and sort out its debt. “From my perspective, I’m done,” he said in an interview.

PUBLISHEDMAR 31, 2016, 12:49 PM SGT

KUALA LUMPUR (BLOOMBERG) – Former investment banker Arul Kanda took a job in Malaysia last year and walked into the crossfire of the country’s biggest political crisis since Prime Minister Najib Tun Razak came to power in 2009.

Now, even as the finances of 1Malaysia Development Bhd. (1MDB) are being investigated in at least three countries, Kanda, president of the government-linked fund, says his job sorting out the organisation is done.

“I only signed up for one-third of what I ended up doing,” he said in an interview on Wednesday (March 30) at the fund’s headquarters in Kuala Lumpur. “I did not sign up for the investigations because that happened after I joined, and I definitely didn’t sign up for the extent of the comms-slash-politics that I had to deal with.”
Mr Kanda was brought in in January 2015 when the debt-ridden fund was teetering on the edge of default. Within months the company became embroiled in allegations of financial irregularities that sparked probes in Malaysia, Singapore and Switzerland.

1MDB, whose advisory board is headed by Mr Najib, has consistently denied wrongdoing.

Kanda echoes statements by Mr Najib and other government officials that the allegations are unfounded and politically motivated. He said 1MDB hasn’t been contacted by any foreign legal authorities to help with investigations.

“The misunderstandings about 1MDB stem from the fact that what was a business problem became politicised and became a tool by the opposition or those not aligned with the government to topple a democratically-elected prime minister and government,” he said. “That’s the reality of it.”

He says his job was to turn 1MDB around and sort out its debt.

“From my perspective, I’m done,” said Mr Kanda, a trained lawyer. “Everything’s signed. Legal agreements are there, they’re binding. I’m leaving the company” with available funds, he said.

1MDB will repay RM6 billion (S$2.07 billion) in the next three weeks, leaving it free of short-term debt and bank loans and with at least 2.3 billion ringgit in the bank, Kanda said.

It announced last week the settlement of a RM700 million syndicated term loan. 1MDB will also sign a term sheet for the development of its land parcel in the state of Penang in about two weeks, he said.

“We don’t need any money from our shareholders to get us to 2039” when the last bonds are due, said Mr Kanda, who signed up for a three-year term at the fund. “There is no bailout of 1MDB.”

Set up by the government in 2009 to build infrastructure with borrowed money, 1MDB amassed about RM42 billion of debt in less than five years, largely from assets in the energy sector.

It started facing cash-flow problems in 2014 after a planned initial public offering of energy unit Edra Global Energy was delayed by an unfavourable market. Kanda raised money to pay the debt by selling assets including Edra, which was bought by China General Nuclear Power Corp. for RM9.83 billion.

Mr Kanda said 1MDB will retain land and assets that will allow it to pay off outstanding bonds. They include the 70-acre Tun Razak Exchange financial district, or TRX, in downtown Kuala Lumpur, named after Mr Najib’s father.

“Why don’t I want to sell it off today and pay off the debt? Because I think it’s going to be worth more over time.”

1MDB’s 2023 notes traded on Wednesday at a level last seen in April 2015, according to Bloomberg-compiled prices. Investors would have gained 30 per cent if they’d bought the securities at their lowest point of 71.6 cents on Oct 2. The bonds were sold at par of 100 cents in March 2013 in a deal arranged by Goldman Sachs Group Inc. and rated at A- or four levels above junk by Standard & Poor’s.

Critics questioned Goldman’s earnings from arranging bond sales for 1MDB in 2012 and 2013. Goldman made about US$593 million from three bond sales that raised US$6.5 billion, according to a person with knowledge of the matter, dwarfing what banks typically make from government deals.

Mr Tim Leissner, then Goldman’s South-east Asia chairman, was an adviser to the state fund from early on, according to a former colleague familiar with the bond sales.

“There were large requirements and Goldman was one of the few firms, in fact the only firm, that could provide the solution that was required,” Mr Kanda said. “Overall the objectives were met.”

Mr Leissner left Goldman earlier this year after questions about the fund, his work on an Indonesian mining deal and an allegedly inaccurate reference letter. His lawyer Jonathan Cogan did not respond to messages. Goldman has previously defended the Malaysia fees as representing its underwriting risks and market conditions at the time.

Still, even after 1MDB pares its assets and debts, allegations may continue to dog Mr Najib as questions linger over US$681 million which appeared in his personal accounts before the last election in 2013.

Malaysia’s attorney-general said the funds were a donation from the Saudi royal family and has cleared the prime minister of any wrongdoing.

The central bank said in October its probe of 1MDB found inaccurate disclosures by the company when it sought approvals for investments abroad, prompting the regulator to revoke the permissions given and instructing the repatriation of more than US$1.8 billion related to multiple deals.

It also proposed criminal proceedings against 1MDB, something the attorney-general dismissed as it concluded there was no wrongdoing.

This month, former premier Mahathir Mohamad filed a lawsuit against Mr Najib, alleging he “actively and deliberately” sought to derail investigations by local agencies into 1MDB, according to a statement by Dr Mahathir’s lawyers.

Mr Najib has denied the allegations.

For his part, Mr Kanda says he’s done what he was asked to do.

“My job is to come in, identify the problem, put together the solution, help” people to stay focused, he said, “I’ve done it, now I need to move on.”


The skeptics and disbelievers may continue to be in their make-belief world of controversies, contentions and scandals but facts are what they are.

Now that ‘Rationalisation Plan’ Group President Arul introduced on 29 May 2016 has been fully executed and the implementation of each projects are on the way, our attention should only be up and ride on all the goodness from the salvaged 1MDB which definitely brought about betterment for Malaysia.

*Updated 1800hrs

Published in: on April 9, 2016 at 13:00  Comments (3)  

Praeter opportunus oculus

It is pertinent to determine the motive of WSJ Financial Editor Ken Brown’s rabid markings on the USD690million ‘donation’ which allegedly credited into Prime Minister Dato’ Sri Mohd. Najib Tun Razak’s personal Ambank account did not originate from individuals of Saudi but monies schemed of transactions relating to 1MDB.

Pro-Anwarista news portal story:

RM2.6 billion in Najib’s accounts not from Saudis, says WSJ editor

Published: 18 February 2016 9:21 PM

WSJ finance editor has refuted that the RM2.6 billion ‘donation’ in Datuk Seri Najib Razak’s accounts did not come from the Saudi royal family as stated by the attorney-general. – AFP file pic, February 18, 2016.
WSJ finance editor has refuted that the RM2.6 billion ‘donation’ in Datuk Seri Najib Razak’s accounts did not come from the Saudi royal family as stated by the attorney-general. – AFP file pic, February 18, 2016.
The billions of ringgit that ended up in Prime Minister Datuk Seri Najib Razak’s accounts did not come from the Saudi royal family, but companies related to 1Malaysia Development Berhad (1MDB), The Wall Street Journal (WSJ) finance editor Ken Brown said.

Brown told Australia’s ABC News in an interview that they had evidence to back this up, and that ongoing international investigations into 1MDB would likely lead authorities to Najib.

“Our reporting has shown for months now that the money did not come from the Saudis but it came via a bunch of companies and bank accounts related to 1MDB.

“Our story hasn’t been called into question yet and we have lots of evidence to back that up,” said Brown in the interview, which was uploaded onto ABC News on February 12.
He said the “real action” now were the overseas investigations into 1MDB, and said information would slowly trickle out in the next few months.

“I think, you know, it will be hard to keep it away from the PM,” said Brown, referring to the direction of the investigations.

Brown added he believed Attorney-General Tan Sri Mohamed Apandi Ali’s proposed amendments to the Official Secrets Act 1972 came about because the government wanted Malaysians to stop talking about the money Najib received.

Calling the proposed amendments an “extreme action”, he said it was no surprise that it was mooted shortly after Apandi directed investigations into the funds be closed.

“They’ve gotten a big backlash from that and now they come out and say no one can speak about that,” said Brown.

He said the proposal to charge journalists who refused to disclose their sources was also a move to cripple news organisations.

“Last year they shut down a couple of news organisation that had been reporting on the scandal. So this is part of that.

“They’re really trying to limit hat because the more they come down the more it looks worse for the government.”

In July last year, WSJ and the Sarawak Report reported that SRC International Sdn Bhd had transferred RM42 million into Najib’s personal bank accounts.

The sums were transferred between December 2014 and February 2015 through SRC International’s subsidiaries, Gandingan Mentari Sdn Bhd and a separate company, Ihsan Perdana Sdn Bhd, a private company set up to manage 1MDB’s corporate social responsibility contributions.

But after six months of investigation, Apandi on January 26 said there was no criminal wrongdoing as the funds Najib received was a donation from “the Saudi royal family”. – February 18, 2016.

– See more at:


It is true WSJ broke to story last July which drew unprecedented controversy on the public perception towards Prime Minister Najib. However, it is not necessarily the complete truth what Brown wrote and WSJ published.

The fact is that, PAC and Auditor General have yet to complete their investigations. What is known so far, the Rupert Murdoch’s WSJ and Open Society Foundation funded rogue London-based-blog which started to demonise BN leadership in sarawak and then Sabah, Sarawak Report, claims have not been substantiated with indisputable evidence.

1MDB ‘Rationalisation Plan’ briefed to the Cabinet on 29 May with a deadline of sort out all the RM42billion financial commitments and borrowings, within one year.

What is interesting about the whole 1MDB scandal is that so many parties, be it rogues like Khairuddin Hassan, Matthias Chang, Opposition MPs such as Tony Pua and Rafizi Ramli and foreign media have been incessantly harping on the notion that its under watchful eyes of the world community.

They are bent on authorities such as the Americans, British, Swiss, Hongkies and Singaporeans are coming with the deadliest forensics to catch the criminals, which insinuates the involvement of Prime Minister Najib.

The fact is that non of these authorities ever in touch with 1MDB or the Attorney General, to require their co-operation so that investigations are on its way.

So many trumpeting not no real fire to justify the smokes they have claimed, so many within the international community is irritated about.

The western media, particularly the ones funded by Neo Con Jewish communities are incessant to be an effective tool in demonising Prime Minister Najib and cast a negative perception against the Malaysian Government.

The most recent WSJ story by Ken Brown is an example how the Neo Con Jewish controlled media is trying to hype and harp that the USD690million ‘political donation from Saudi individuals of the Kingdom’s Royal family’ is actually monies embezzled from 1MDB related transactions.

Even BBC carried the story, as per how Attorney General Tan Sri Append Ali proclaimed it to be.

Saudi gift to Malaysia PM Najib Razak ‘for election campaign’

By Frank Gardner
BBC News
27 January 2016
From the section Asia
Malaysia’ Prime Minister Najib Razak (C) reacts as he walks towards his car after attending a parliamentary session in Kuala Lumpur on 26 January 2016Image copyrightAFP

Najib Razak has consistently denied allegations of corruption
The $681m (£479m) deposited in the bank account of Malaysian PM Najib Razak by Saudi Arabia was to help him win the 2013 elections, a Saudi source says.

Malaysia’s attorney general cleared Mr Najib of allegations of corruption on Tuesday after ruling that the money was a donation from the Saudi royal family.

Mr Najib had denied that the money came from state investment fund 1MDB.
The Saudi source said the donation was made amid concern in Riyadh about the influence of the Muslim Brotherhood.

At the time, Malaysia’s opposition alliance included the Pan-Malaysian Islamic Party (PAS). Its founders were inspired by the Brotherhood, although there is little evidence the Brotherhood actually has much support in Malaysia.

Mr Najib’s coalition went on to win the election, but with one of its poorest showings in more than 50 years in power.

Malaysia’s ‘mysterious millions’ – case solved?
1MDB: The case riveting Malaysia
Profile: Najib Razak
The secretive donation to Mr Najib was allegedly paid over in several wire transfers between late March 2013 and early April 2013, just ahead of the election on 5 May.
The well-placed Saudi source, who has asked not to be named, told the BBC the payment was authorised from the very top – from Saudi Arabia’s late King Abdullah – with funds coming from both his personal finances and state funds.

Saudi Arabia’s King Abdullah speaks in 2014Image copyrightAFP
Image caption

A Saudi source said the donation was approved by the late King Abdullah
Prince Turki bin Abdullah, one of the king’s sons, is reported to have had extensive business dealings in Malaysia.
The purpose of the donation was simple, said the Saudi source – it was to help Mr Najib and his coalition win the election, employing a strategic communications team with international experience, focusing on the province of Sarawak, and funding social programmes through party campaigning.

But why should the Saudis care about an election in a non-Arab country more than 6,000 km (3,700 miles) away? The answer, the source said, lay in their concerns over the rising power of the Muslim Brotherhood, which they consider a terrorist organisation.

The Saudis were already upset at events in Egypt, where President Mohammed Morsi was busy consolidating the Brotherhood’s hold on the country.
Supporters of ousted Egyptian President Mohammed Morsi in Cairo in June 2012Image copyrightGetty Images
Image caption

Saudi Arabia was concerned by the rise of Mohammed Morsi’s Muslim Brotherhood in Egypt
It would be another three months before Mr Morsi was to be deposed by the army, and the Saudis were convinced that the opposition was being supported by the Brotherhood and Qatar, which backed the Brotherhood and other Islamist groups in the Middle East.

Very murky’
So how unusual is it for the Saudi royal family to hand over this amount of cash in a personal donation? Not at all, said the Saudi insider, adding that Jordan, Morocco, Egypt and Sudan have all been beneficiaries of multi-$100m donations from the Saudi royal purse.

“There is nothing unusual about this donation to Malaysia,” he said. “It is very similar to how the Saudis operate in a number of countries.”

Saudi Arabia was quick to support the overthrow of Mr Morsi in Egypt, providing the military-backed government with billions of dollars in aid and loans.

Malaysia’s Attorney-General Mohamed Apandi Ali shows money flow charts at a news conference in Putrajaya, Malaysia, 26 January 2016Image copyrightEPA
Image caption
Attorney-General Mohamed Apandi Ali says no further action needs to be taken on the donation
Jordan has been the beneficiary of more than $1bn in Saudi development funding, while Riyadh has deposited more than $1bn in Sudan’s central bank and signed deals to finance dams on the Nile. Morocco has been provided with oil, financing, investments and jobs in recent years.

However, questions are still being asked about the secretive and convoluted nature of the money transfer, and the fact that Malaysia’s prime minister returned 91% of it just four months later. The remaining $61m has not been accounted for.
A British corporate investigator with extensive experience of the Middle East told the BBC that the $681m was paid through the Singapore branch of a Swiss bank owned by the rulers of Abu Dhabi.

“It is very murky”, he said. “This case will never be fully cleared up until the Saudis and the Malaysians release all the transaction data, and that has not happened.”

There has been growing outrage in some circles in Malaysia that the attorney-general has closed the file on this case and cleared the prime minister of any offences.

Clare Rewcastle Brown, who has reported extensively on the issue for the Sarawak Report, said the claim that the payment to Mr Najib was a Saudi royal donation for political purposes needed to be treated “with considerable caution”.

She told the BBC that the $681m was far more likely to be connected to money raised by 1MDB, much of which is reported to have gone missing.


So what is the agenda?

*Updated 2300hrs

Media statement by 1MDB on WSJ’s latest lies:

Media statement by 1Malaysia Development Berhad

Issued on 19 Feb 2016

For immediate publication

Wall Street Journal’s Allegations Baseless and Unproven

Contrary to the Wall Street Journal’s baseless and unproven allegations, 1MDB has consistently maintained that it has not paid any funds to the personal accounts of the Prime Minister. This has been reiterated by multiple lawful authorities including the Malaysian Anti Corruption Commission, the Malaysian Attorney General, and various reputable international publications, who have confirmed that these funds came from Saudi Arabia. To therefore suggest, as the Wall Street Journal has, that their reporting on this matter has never been called into question is not only disingenuous but an outright lie.”


Published in: on February 19, 2016 at 09:30  Comments (3)  

8.8m depositors 3, Geng Loceng 0! Hurrah!

The Klang Kirim Geng Loceng who tried so hard to instigate 8.8million TH depositors to rebel against the Government with their contentious and scandalous allegations designed with malice, as part of creating the impression TH was being plundered to ‘bail out’ 1MDB in TRX.

The Edge Market story:

Tabung Haji not selling TRX land but developing it into high-end apartments

By Danial Idraki / | February 4, 2016 : 3:01 PM MYT

KUALA LUMPUR (Feb 4): Lembaga Tabung Haji said it will be developing the 1.6-acre Tun Razak Exchange (TRX) land it had bought from 1Malaysia Development Bhd (1MDB) into high-end residential apartments worth an estimated gross development value (GDV) of RM820 million.

The decision not to sell but to develop it, according to its chairman Datuk Seri Abdul Azeez Abdul Rahim, was made after considering the appreciation of the land’s value since Tabung Haji bought the tract.

Abdul Azeez said the land is worth about RM250 million currently, compared to the RM188.5 million price tag it paid to 1MDB to acquire the tract last April, which, in turn, was 43 times the price 1MDB had paid for the plot when it bought the land from the federal government about five years ago.

Tabung Haji’s acquisition had been viewed as a bail-out of sorts for the cash-strapped state-owned investment company at the time and was heavily criticised.

Following the purchase, Tabung Haji said the plot would be sold at a profit and that many buyers had shown interest.

“We [have] reconsidered our position, and decided that it is better to keep and develop the land, since it has gone up in value to about RM3,100 per sq ft from the RM2,773 that we paid for,” Azeez told a press conference after announcing the pilgrim fund’s dividend and bonus payout for its financial year 2015.

He added that Tabung Haji Properties has been given the mandate to develop the land, and that the project is now in its initial planning stage.

Tabung Haji chief executive and deputy group managing director Datuk Johan Abdullah, meanwhile, said the group intends to build high-end residential apartments on the TRX land, with an initial GDV of approximately RM820 million.

“We must also look at the market outlook, which at the moment is depressed for the property sector. But we believe that this development is a good investment for the long term,” Johan added.


It was part of the strategy to demonise Prime Minister Dato’ Sri Mohd. Najib Tun Razak’s leadership and the Klang Kirim Geng Loceng was blatant enough to manipulate half truths, to create a panic for the 8.8 million TH depositors.

It started with the assuringly anonymous blog which produced some of the papers of a TH BoD meeting, about the proposal to acquire the 67,954 sq. ft. parcel earmarked for high end luxury residential/serviced apartments within TRX.

Then some of the Klang Kirim Gang Loceng harped on the matter further, trying io re-controversialise the issue.

Last December Dewan Rakyat sitting, Minister in-charge of TH matters Mej. Jen. (B) Dato’ Seri Jamil Khir Baharom already explained that the  67,954 sq. ft. parcel is too valuable to be hived off.

Published in: on February 4, 2016 at 21:00  Comments (3)